What is TEU?
Twenty-foot Equivalent Unit — the standard measure of container shipping capacity, based on a 20-foot container. In the context of U.S. customs and tariff recovery, understanding teu is essential for navigating the CAPE refund process and ensuring accurate duty assessment.
Definition
A Twenty-foot Equivalent Unit (TEU) is the standard unit of measurement for container shipping capacity. One TEU represents a single 20-foot shipping container (20 feet long, 8 feet wide, 8.5 feet tall). A standard 40-foot container equals 2 TEUs. Port throughput, vessel capacity, and shipping industry statistics are typically expressed in TEUs. The world's largest container ships can carry over 24,000 TEUs. Total global container trade exceeds 150 million TEUs per year.
How TEU Relates to Tariff Refunds
TEU is a logistics measurement, not a customs concept. It does not affect duty assessment or CAPE refund eligibility. However, importers often track their shipping costs on a per-TEU basis as part of total landed cost analysis.
Example
The Port of Los Angeles handles approximately 10 million TEUs per year. An importer shipping 50 forty-foot containers per year is moving 100 TEUs annually.
Frequently Asked Questions
- What fits in one TEU?
- A 20-foot container holds approximately 33 cubic meters (1,169 cubic feet) and has a maximum payload of about 21,600 kg (47,600 lbs), though weight limits vary by carrier.
- Why use TEUs instead of just counting containers?
- TEUs standardize capacity measurement because containers come in different sizes (20ft, 40ft, 45ft). Converting everything to TEUs allows apples-to-apples comparison.
Related Terms
Legal References
- ISO 668 — Container Classification and Dimensions
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